Technical Analysis

Shankara Building Products (₹414.7) : Buy

Yoganand D BL Research Bureau | Updated on May 20, 2021

Investors with a short-term horizon can buy the stock of Shankara Building Products. Witnessing buying interest, the stock gained more than 7 per cent accompanied by above average volume on Thursday. Moreover, the stock has conclusively breached the descending channel on the upside at around ₹390.

Following an up-move in February, the stock recorded a 52-week high at ₹518 and encountered a resistance at around ₹520. Thereafter, the stock began to trend downwards and moved within the descending channel until recent breakout. Further, the stock has conclusively surpassed a key long-term resistance at ₹400 and has strengthened the bullish momentum.

The stock trades well above the 50- and 200-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is trending upwards in the neutral region. The short-term forecast is bullish for the stock. It can continue to trend upwards and hit the price targets of ₹432 and then ₹440 in the forthcoming trading sessions. Traders with a short-term horizon can buy the stock with a stop-loss at ₹405.

(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)

Published on May 21, 2021

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